Fraud Reported Losses Skyrocket to $12.5 Billion in 2024, FTC Data Reveals

Key Takeaways

• Fraud Losses Soar: Consumers reported losing $12.5 billion to fraud in 2024, a 25% increase from the previous year.
• Investment Scams Lead the Charge: Investment scams topped the list with $5.7 billion in reported losses.
• New Payment Methods, New Risks: Bank transfers and cryptocurrency have surpassed other payment methods in fraud losses.
• Government Scams Increase: Losses to government imposter scams grew by $171 million to $789 million.
• The Rise of Digital Fraud: Email, phone, and text remain the top methods for scammers to reach victims, signaling the growing importance of digital fraud prevention.

Deep Dive

In a shocking new report from the Federal Trade Commission (FTC), consumers in the U.S. reported losing over $12.5 billion to fraud in 2024. That’s a staggering 25% increase from the previous year, underscoring a rising tide of fraud that businesses, consumers, and regulators are struggling to keep up with.

What’s most surprising? This rise in reported losses isn’t due to more fraud cases popping up. In fact, the number of fraud reports stayed steady at around 2.6 million. But the real eye-opener comes when you look at the percentage of victims who actually lost money. In 2023, 27% of people who reported fraud said they lost money. In 2024? That figure jumped to 38%. It's clear that fraud is hitting harder than ever.

Investment Scams Take the Lead, But They're Not Alone
Investment scams were the big winner (though, certainly not one anyone wants to claim), with a whopping $5.7 billion reported lost. That’s up 24% from 2023. A huge chunk of that was due to the ever-popular but dangerous world of cryptocurrency and other high-risk investments. Meanwhile, imposter scams continued their reign of terror, with $2.95 billion in reported losses.

“It’s no surprise that scammers are quick to adapt,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Fraud tactics evolve at a fast pace, and it’s up to us to stay on top of them.”

It’s not just about more fraud, it’s about smarter fraudsters using increasingly sophisticated methods to deceive their victims.

Scams Going Where the Money Is
What’s particularly troubling is the way payment methods have shifted. Consumers are reporting more losses through bank transfers and cryptocurrency than through credit cards or other traditional methods. It’s a sign that fraudsters are capitalizing on new avenues for quick, untraceable transactions.

The FTC’s data doesn’t stop there. Imposter scams were the most commonly reported fraud category, but losses were also up across the board in other categories. Government scams alone increased by $171 million from 2023 to 2024. Meanwhile, job and business opportunity scams also skyrocketed, with consumers reporting $750.6 million in losses—nearly $250 million more than the year before.

Perhaps most unsettling is the rise in online job scams, where fraudulent “job opportunities” led to a tripling of reports from 2020 to 2024. The reported losses for these scams jumped from $90 million in 2020 to $501 million last year. Scammers are seizing the moment, with digital communication as their weapon of choice. Email was by far the most common method used to reach victims, followed closely by phone calls and text messages.

A Shared Responsibility in the Fight Against Fraud
As we continue to see this wave of fraud, the message is clear: businesses, consumers, and regulators all have a role to play. For businesses, it’s about tightening up fraud detection systems and making sure their customers are protected from the ever-evolving tricks of scammers. For consumers, staying informed and vigilant is key to avoiding falling victim.

For compliance and risk management professionals, the data highlights an urgent need to revisit policies, controls, and training. With fraud becoming more digital, more sophisticated, and more invasive, the days of relying on outdated security measures are over. Companies must act proactively to safeguard against these growing threats and ensure compliance with consumer protection regulations.

The Role of the FTC’s Sentinel Network
The FTC’s Consumer Sentinel Network, a database that collects millions of fraud reports from consumers and law enforcement agencies, is helping to fuel investigations and actions against fraudsters. In 2024, this network gathered 6.5 million reports—beyond just fraud complaints, it also includes identity theft and consumer issues related to financial services. The FTC uses these reports as the foundation for investigations, helping identify patterns, gather evidence, and inform public outreach.

For the public, the FTC has made it easier than ever to report fraud. Those who fall victim to scams can file complaints via ReportFraud.ftc.gov, where they can also receive guidance on what steps to take to recover lost funds.

So, What Does This Mean for You?
The rise in reported fraud losses is a reminder that vigilance is crucial. Businesses must stay ahead of scammers by continually assessing their risk management frameworks and ensuring they’re not only compliant with regulations but actively working to protect customers. For compliance and risk professionals, this is an ongoing challenge—one that requires agility, foresight, and an awareness of the latest fraud trends.

The FTC’s latest data is both a warning and a call to action. It’s clear that fraud is evolving, and so must our approach to tackling it. We can’t wait for fraud to come to us—we need to stay ahead of the curve, making sure our defenses are strong enough to withstand whatever new tactics scammers throw our way.

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